City Council Agenda Report
Meeting Date: December 5, 2023
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Services Agreement with Richard Heath and Associates, Inc.
Recommendation
Approve and authorize the City Administrator to execute a Services Agreement with Richard Heath and Associates, Inc. (RHA), in substantially the same form as submitted, to provide energy audit, engineering support and direct installation services in an amount not-to-exceed $375,000, for a three-year term.
Background
Vernon Public Utilities (VPU) currently offers several customer-facing incentive programs and services designed to encourage energy efficiency and promote beneficial electrification to reduce greenhouse gas emissions (GHG). To successfully implement various customer programs, VPU will require technical assistance in the form of customer education, on-site energy audits, efficiency/electrification retrofit recommendations, general engineering support, and program reporting. The installation of efficiency and electrification measures in City-owned buildings/facilities may also be required in certain cases upon approval by VPU.
In accordance with Vernon Municipal Code (VMC) Section 3.32.080, on September 11, 2023 staff issued a Request for Proposals (RFP) for Energy Audit, Engineering Support and Direct Installation Services. The RFP was advertised on the City's Planet Bids platform. The scope of services included the ability to conduct customer outreach and education, energy audits that provided recommendations for energy efficiency and electrification upgrades, engineering support to meet policy and reporting requirements, plus the direct installation of efficiency and electrification measures for city facilities.
Subsequently, proposal packages were received from three firms by the October 5, 2023 deadline. Pursuant to VMC Section 3.32.090, price was not a factor in determining the most qualified bidder. A qualified panel thoroughly examined the proposals received based on demonstrated competence (45%), professional qualifications (45%), and overall quality and responsiveness to the RFP (10%).
While all three firms met the minimum criteria, the proposal from Richard Heath and Associates (RHA) demonstrated the best expertise, experience, and comprehensive approach to the services requested in the scope of work detailed in the RFP. RHA has over 20 years of experience delivering municipal utility programs that serve the commercial customer segment.
This includes active service agreements with several members of the Southern California Public Power Authority (SCPPA), such as Anaheim Public Utilities and Riverside Public Utilities, to provide on-site energy assessments, direct installation, and engineering services. RHA possesses extensive experience in delivering energy audit, engineering support, and direct installation services to help municipal utility clients, along with commercial and industrial customers, to make energy efficiency upgrades and support the direct installation of lighting projects. Additionally, RHA’s proposal demonstrated the ability to utilize a dedicated database system to support the successful implementation of efficiency and electrification programs. RHA has provided energy audit and engineering support for VPU previously and performed such services to the City’s satisfaction.
Staff recommends that the City Council approve a Services Agreement with RHA to provide energy audit, engineering support, and direct installation services for a total amount not-toexceed $375,000 over a term of three years.
The proposed Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $375,000 for the three-year term. Sufficient funds are included in the Electric Fund, Customer Programs Department, Professional Services-Other, Account No. 055-050-595-529215 for the current fiscal year. Sufficient Funds will be budgeted in subsequent years.
Attachments
1. Services Agreement with Richard Heath and Associates, Inc.